Oasis Healthcare takeover

on 13 June 2007

A number of organisations have confirmed that the dental corporate group Oasis Healthcare has been offered a takeover bid worth 82p a share from private equity group Duke Street Capital.

Oasis Healthcare, the corporate that owns more than 130 dental practices in England and Wales, providing a both NHS and private dentistry now has to decide whether to accept an offer from private equity company Duke Street Capital for almost £77m.

Duke Street Capital is a UK-based, independent private equity company investing in established, western European businesses valued in excess of £30 million.

The offer, which supposedly consists of 82 pence in cash for each share valuing the business at about £76.9m, is a premium of 74.4% over 47 pence, the closing price before the start of the offer period. Its largest shareholder, ADP Healthcare is rumoured to be considering making a counter offer of over £80 million.

Interest from private equity firms in dental companies is thought to reflect a hope to bring together a very fragmented sector.

Corporates like Oasis and ADP only make up about 5% of the market. Duke Street Capital’s managing partner, Peter Taylor, is reported to have said that the dental market is undergoing significant change and that Oasis has an opportunity to become the market leader.

Chief executive of Oasis Healthcare, Stephen Lambert, said the Duke Street Capital offer was too good to turn down. It promised to grow the company with particular emphasis on winning more NHS contracts, which at the moment account for 40% of its entire business.

Do you think Oasis will really focus on increasing their NHS workload? Post a comment below to discuss your thoughts